U.S. Demands Samsung Electronics' Stake in Exchange for Investment Subsidies [Lee Sang-eun's Washington Now]

The U.S. government has decided on a policy to require equity stakes from foreign companies such as Samsung Electronics and TSMC in return for subsidies under the CHIPS Act. This follows its move to acquire a 10% stake in its domestic company, Intel, and the plan is to apply the same method to foreign entities.

On the 19th (local time), U.S. Secretary of Commerce Howard Lutnick appeared on CNBC and, when asked whether acquiring a 10% stake in Intel constitutes payment for CHIPS Act subsidies, said, "Yes," adding, "President Trump’s answer to 'what do American taxpayers get in return?' is: getting equity shares."

Reuters, citing White House officials and anonymous sources, reported that Secretary Lutnick is considering requiring equity stakes not only from Intel but also from companies such as Samsung Electronics, TSMC, and Micron in exchange for subsidies.

Secretary Lutnick emphasized in the CNBC interview that acquiring equity does not mean interfering in management. He explained that, just as the U.S. government held a 'golden share' when Nippon Steel acquired U.S. Steel, equity can function as a tool to enforce agreements by foreign firms. He added, "It’s not just about handing out grants for free—we must secure economic returns," and, "We need to ensure taxpayers receive a reasonable return."

However, in the midst of intensifying competition in the semiconductor sector, the implications of the U.S. government holding stakes in major chipmakers are significant. There is concern that the U.S. government might pressure firms to share sensitive management information as it pursues the revival of domestic semiconductor manufacturing. The U.S. Department of Commerce manages a total of $52.7 billion in CHIPS Act funds. The Biden administration finalized CHIPS Act subsidies for Samsung Electronics and other companies right before the Trump administration began; however, since disbursement is made according to investment milestones, most of the funds have not yet been released.

Concerns are also rising within the U.S. itself. Once the government acquires equity in companies, it may have incentives to keep injecting funds even after poor investments, potentially interfering with company management. Some critics continue to argue that the U.S. is heading toward a system of 'state capitalism' akin to China.

Washington = Correspondent Lee Sang-eun selee@hankyung.com